The big break even
Raise your hand if you know what your break even is. Hmm, I see a few hands raised. And a few more of you are not quite sure. So your hand is sort of halfway up. Right? Maybe you’re not even sure what I’m talking about. And maybe you haven’t ever done this before.
The break even point is something every new business owner needs to calculate.
Preferably before you start your business. But it’s easy to overlook it when you start out. Because you wanna get right to work. And that’s totally understandable. After all, you started your business so you could take pictures, or build cabinets, or sell lots of stuff online. But you sure didn’t come up with your great business idea just so you could calculate boring numbers. Right?
I get it. Because I’m like you. I’d rather do the work I love than have to do the calculating stuff like projections and pivot tables. But it’s important to know if your business is making (or is gonna make) enough money to support you. And when you know your numbers, you’ll be able to adjust as necessary. Maybe you’ll need to raise or lower your prices. And maybe you’ll need to hire some help.
It’s what I call break even analysis time.
Time to figure out and know your sales revenue, your fixed and variable costs. And what your contribution margin is. Because the contribution margin directly influences your net profit. And you want that net profit as high as possible. Am I right?
Calculate all those numbers, and you can find your break even point. It looks like this sales/dollars = fixed cost /contribution margin.
And then you can start playing. Price adjustments. Possibly lower expenses. Fixed and/or variable.
All of this is part of what I call the Be Ready stage. Where you develop strategies for steady income. Remember, you’re a CEO. It’s part of your job description to know this stuff.
So, where is your break even? Does it seem too overwhelming to keep track of your numbers and performance measurement? And how about making projections, analyzing, and tweaking when necessary? When you’re Ready to hand this kind of work off to an experienced business coach CRM system, I’m here for you.
But my system isn’t for everybody. Just the ones who are ready to invest in themselves and their business. The ones who understand the value of being a highly organized CEO instead of staying on the self-employed hamster wheel.And the ones who understand that RIGHT NOW there’s a huge opportunity for people who aren’t letting fear rule their decisions.
Right now being proactive instead of reactive can put you way ahead of your competition.
So, are you really, really ready to get ready, get RondaReady and…